Rupee falls 9 paise to record low of 90.87 against US dollar in early trade
Mumbai (PTI): The rupee plunged 9 paise to a record low of 90.87 against the US dollar in early trade on Tuesday, weighed down by sustained FII outflows and no breakthrough in the India-US trade deal.
However, a weaker greenback and a decline in global crude oil prices capped further losses in the domestic unit, according to forex traders.
At the interbank foreign exchange, the rupee opened at its all-time low of 90.87 against the US dollar, down 9 paise from its previous close, and traded in a narrow range of 90.77- 90.87 in early trade.
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The rupee on Monday settled at a new all-time low of 90.78 against the US dollar, registering a loss of 29 paise over its previous close, weighed down by uncertainty over an India-US trade deal and persistent foreign fund outflows.
"The US-India trade deal still seems to be off by a distance with the Commerce Secretary saying the first phase will be signed before the end of the year and news that we are closest to the deal being signed. The uncertainty has clouded the recovery on the USD/INR pair as the rupee opened lower with dollar buying happening every day," Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.
Even a reduction in trade deficit on Monday could not bring about a recovery in the rupee with Foreign Institutional Investors (FII) outflows continuing, he added
According to the latest government data released on Monday, India's trade deficit narrowed to a five-month low of USD 24.53 billion in November, as exports rebounded by 19.37 per cent to a six-month high of USD 38.13 billion after contracting in October, driven by higher shipments of engineering and electronics goods.
At the same time, the country's imports dipped by 1.88 per cent to USD 62.66 billion due to a fall in the inbound shipments of gold, crude oil, coal, and coke.
FIIs sold equities worth Rs 1,468.32 crore on Monday, according to exchange data.
Also, wholesale price inflation stayed in the negative for the second consecutive month in November at (-) 0.32 per cent, even though there was an uptick in prices of food articles like pulses and vegetables on a month-on-month basis, government data showed on Monday.
Wholesale Price Index (WPI)-based inflation was at (-) 1.21 per cent in October and 2.16 per cent in November last year.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.03 per cent lower at 98.27.
Brent crude, the global oil benchmark, was trading 0.61 per cent lower at USD 60.19 per barrel in futures trade.
On the domestic equity market front, the 30-share benchmark index, Sensex, declined 363.92 points to 84,849.44 in early trade while the Nifty was down 106.65 points to 25,920.65.
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Modi govt by changing name of MGNREGA exposed its 'hatred' towards Gandhi: Siddaramaiah
Bengaluru (PTI): Karnataka Chief Minister Siddaramaiah on Tuesday said that the union government led by Prime Minister Narendra Modi, attempting to change the name and structure of the MGNREGA, has itself exposed its "hatred" towards the poor and towards Mahatma Gandhi.
He also accused the Centre of "altering" the very structure of the scheme, by shifting nearly 40 per cent of the cost onto the state governments, and called Modi "anti federal".
Suggesting that the NDA government at the Centre start a "Ministry of Name Change", with the Prime Minister himself holding that portfolio, the CM warned of a statewide agitation against this name change move.
The Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Bill, 2025, that seeks to replace the existing rural employment law MGNREGA, was introduced in the Lok Sabha on Tuesday amid strong objections by the opposition to the "removal" of Mahatma Gandhi's name from it.
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"The Union government led by Prime Minister Narendra Modi, which is attempting to change the name and structure of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA), has itself exposed its hatred towards the poor and towards Mahatma Gandhi," Siddaramaiah said in a statement.
Implemented by the UPA government 20 years ago, the MGNREGA scheme has played a crucial role in eradicating unemployment and poverty in rural areas, he said, adding that "this scheme, which guarantees the right to employment to every individual, has received praise from economists both in India and abroad."
Noting that MGNREGA was a genuine form of employment guarantee, the CM said the proposed new structure under the Modi government strips away that guarantee and places the assurance of work at the whims of political leaders.
"This will further deepen caste discrimination and social inequality," he claimed.
Highlighting that the NDA government has altered the very structure of MGNREGA, a scheme whose entire expenditure was earlier borne by the Central government, by shifting nearly 40 per cent of the cost onto the state governments, Siddaramaiah said this stands as clear evidence of the "anti-federal attitude" that Prime Minister Modi has followed ever since coming to power.
"This move will also increase the migration of poor people in search of work as the proposed form does not guarantee employment in their own location -- forcing families to travel long distances to survive," he said.
Naming this scheme after Mahatma Gandhi, who sowed the dream of Gram Swaraj, was a meaningful decision, the CM said, "While Prime Minister Narendra Modi indulges in praising Gandhi during his foreign tours, within the country he has consistently engaged in attempts to erase Gandhi's legacy from key national programmes. From a parivar that seeks to glorify Gandhi's assassin Godse, what different conduct can one really expect?"
"Narendra Modi is widely known for simply changing the names of landmark schemes launched by the UPA government rather than preserving or strengthening them. It would be more appropriate for this government to start a 'Ministry of Name Change,' with the Prime Minister himself holding that portfolio," he said.
More than 25 flagship programmes launched during earlier governments were merely renamed or repackaged by the present regime, the CM further said, listing out that the Nirmal Bharat Abhiyan was rechristened as the Swachh Bharat Mission, while the Basic Savings Bank Deposit Account scheme was rebranded as the Pradhan Mantri Jan Dhan Yojana, among others.
"These changes reflect a consistent pattern of altering names rather than fundamentally strengthening or expanding the original intent of these welfare initiatives," he added.
Stating that the Congress party and state government strongly condemn this "anti-people" decision of the Narendra Modi government, which has snatched food from the plates of the poor, insulted Bapu, and attempted to strangle state governments financially, Siddaramaiah warned about launching a statewide agitation against this move.
"The responsibility of preserving the MGNREGA scheme in its original form must also be taken up by the lakhs of beneficiaries of the scheme. They must hold the BJP leaders of the state accountable and exert pressure on them to raise their voices against this injustice, rising above party lines," he said.
